In September 2018, a ten-member Panel was constituted by the Government to suggest measures to bring the Indian anti-trust laws in sync with the changing business environment and to adopt the best global practices. The panel was chaired by Injeti Srinivas, Secretary in the Corporate Affairs Ministry, and paid special attention to merger guidelines and cross-border competition issues. This review of the competition laws comes at a time when the Indian economy is witnessing a series of acquisitions as part of a bankruptcy court monitored resolution of stressed assets, which calls for closer alignment of the bankruptcy resolution and competition regulation regimes. The Committee handed over its report on 14th August, 2019 to the Finance Minister, with the following key recommendations: 1. Under Indian laws, mergers above a certain threshold require the prior approval of the Competition Commission of India (CCI). A green channel route for automatic approval of the CCI for such cases, especially those under the Insolvency and Bankruptcy Code, was recommended. The report said: “Parties to the combination [mergers and acquisitions] may self-assess, based on specified criteria and pre-filing consultation with the CCI, whether they qualify for notification under the Green Channel.” 2. The introduction of a dedicated bench in National Company Law Appellate Tribunal (NCLAT) for hearing appeals under the Competition Act, 2002. 3. Additional enforcement mechanism of Settlement & Commitments in the interests of speedier resolution of cases of anti-competitive conduct. 4. CCI to issue guidelines on imposition of penalty to ensure more transparency and faster decision making which will encourage compliance by businesses. 5. Merging the Director General’s (DG) Office with CCI as an ‘Investigation Division’ as it aids the competition watchdog in discharging an inquisitorial rather than adversarial mandate. However, the panel clarified that functional autonomy must be protected as well. 6. Opening of CCI offices at regional level to carry out non-adjudicatory functions such as research, advocacy etc. and interaction with State Governments and State regulators. The Finance Ministry shall discuss these recommendations and prepare a Bill for amendment of the Competition Act, 2002 which shall then be debated upon in both Houses of Parliament.
This post has been authored by Tasneem Zakir, 3rd Year, National University of Juridical Sciences
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